FTSE 100, DAX and S&P 500 all stage small bounces
Indices have staged small rallies early on Monday, although there is much work to be done to establish that this is a higher low.
FTSE 100 bounces from trendline support
The FTSE 100 managed to hit trendline support from the December 2018 low on Friday and, for now, a small bounce is underway.
However, we have yet to see a higher low intraday, so this bounce may still be another selling opportunity, for the time being. A rebound in the coming weeks targets 7380 and then 7700, while a close below trendline support heads towards 7000.
DAX rallies off Friday low
For the time being, the DAX rally from Friday’s low and support around 12,900 could still be a selling opportunity.
A break above 13,150 would clear trendline resistance from the 24 January high, while the previous lower high at 13,270 is another target to watch. A reversal targets 12,900 and then potential support at 12,600.
S&P 500 futures stage small bounce
For the S&P 500, Friday witnessed the 50-day simple moving average (SMA) of 3219 acting as support. Aside from a drop to 3210 on Friday, the index continues to hold above 3230.
Rallies above 3290 ran out of steam last week, so we now have clear levels to watch. For the time being, daily stochastics and the moving average convergence/divergence (MACD) are still negative. Therefore, we may see further selling, with a drop below 3220 heading towards possible trendline support from December 2018, around 3140.
This information has been prepared by IG, a trading name of IG Australia Pty Ltd. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
Take a position on indices
Deal on the world’s major stock indices today.
- Trade the lowest Wall Street spreads on the market
- 1-point spread on the FTSE 100 and Germany 40
- The only provider to offer 24-hour pricing
Live prices on most popular markets
- Forex
- Shares
- Indices
